Market commentary in the interim report for Q1, 2020
It is currently difficult to say how the corona crisis will affect the long-term market conditions in the global economy. NCC, like all companies, is impacted by a decline in the economy.
The long-term market conditions in the Nordic region nonetheless remained generally favorable, although a more cautious attitude in some submarkets was already noted prior to coronavirus, with somewhat protracted decision-making processes. There is continued demand for public buildings, such as schools, hospitals and retirement homes, driven by growing cities and the demographic trend. Demand for housing has stabilized. In general, demand for renovation and refurbishment is strong.
Public-sector infrastructure initiatives are fueling the Nordic infrastructure market, resulting in a continued strong market in Norway and Sweden. Competition from both domestic and international players is intense, which makes NCC bid only on the projects that meet the risk profile and profitability requirements NCC has set. Demand for asphalt and stone materials in Norway and Sweden is stable, driven by a strong civil engineering market.
High demand for new premises that are modern and sustainable, primarily in major city areas, and the yield requirements being set by investors, are providing long-term favorable market conditions in the Nordic property market, but the market is difficult to assess in the short and medium term due to the corona crisis.
NCC does not give any forward looking statements outside the market commentary in the interim reports.